Hatoyama Plans to Form New Party Spells Trouble for Noda

Speculation is rife that former Prime Minister Yukio Hatoyama and his followers will form a new party, and whether he stays in the ruling Democratic Party of Japan could determine the future of Prime Minister Yoshihiko Noda’s government.

The DPJ has already lost 49 lawmakers to Ichiro Ozawa’s new Kokumin no Seikatsu ga Daiichi (People’s Life First) and Noda is barely maintaining a majority in the Lower House. If 16 or more lawmakers follow Ozawa’s lead, the DPJ-Kokumin Shinto (People’s New Party) coalition would fall from power.

Hatoyama denied media reports Friday that he could leave the DPJ over his opposition to the consumption tax hike and launch a new party, saying they are “groundless.”